(EXXI) Energy XXI (Bermuda)

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Mon 14:16

Energy XXI (Bermuda) - Notification of Major Interest in Shares

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Fri 15:18

Energy XXI (Bermuda) - Director Interests - Replacement

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Fri 07:00

Energy XXI (Bermuda) - Director Interests

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Thu 07:00

Energy XXI (Bermuda) - Q2 Results & Operations Update

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RNS Number : 6499W

Energy XXI (Bermuda) Limited

02 February 2012

Energy XXI Reports Record Fiscal Second-Quarter Results and Provides Operations Update

· Development drilling program delivers early successes

· Oil represents 72% of production

· Beat of estimates driven by increased oil production and prices

· EBITDA of $226 million sets 4^th consecutive quarterly record

· Free cash flow cuts net debt, builds cash balance

HOUSTON - Feb., 1, 2012 - Energy XXI (NASDAQ: EXXI) (AIM: EXXI) today announced results for the fiscal second-quarter ended Dec. 31, 2011, and provided an operational update.

For the 2012 fiscal second quarter, Energy XXI reported earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) of $225.6 million, more than double the prior-year's fiscal second-quarter EBITDA of $97.8 million. Net income attributable to common shareholders for the 2012 fiscal second quarter was $93.4 million, or $1.11 per diluted share, on revenues of $340.6 million and production of 42,700 barrels of oil equivalent per day (BOE/d).

"Success in developing our asset base delivered record results for the fourth straight quarter and positioned us to continue achieving strong results in today's environment," Energy XXI Chairman and CEO John Schiller said. "Production from the properties acquired in December 2010 increased more than 20 percent during the first year, primarily from oil-focused activities. Oil represented 72 percent of our production in the fiscal second quarter, up from 70 percent in the prior-year period, while realized oil prices rose 41 percent to $110 per barrel. As a result, 93 percent of our revenues for the quarter were derived from oil. This combination generated significant free cash flow that helped us reduce our net debt-to-capitalization ratio to 44 percent from 58 percent a year earlier."

Exploration and Development Activity

At Main Pass 72 (100% WI/83.3% NRI), the Onyx well continues to deliver in excess of 2,200 barrels of oil per day gross as it has since coming online in June 2011. At Grand Isle 16/18 (100% WI/ 87% NRI), multiple recompletions and one development well are delivering gross production rates totaling 5,300 BOE/d. The Sunny development well was drilled to 8,579 feet total vertical depth (TVD) targeting updip C-2 sands. The well encountered 225 feet of net pay in the B and C sands and was dual-completed. Gross production from the B-4 and C-4 sands is currently averaging 1,400 BOE/d, while the primary target, the C‑2 sand was gravel packed and is available to produce through a future wireline zone change. The Winters development well was drilled to 16,500 feet TVD, encountering 166 feet gross and 83 feet net of natural gas pay in the K-2 sand. The well is expected to be on production within three weeks at a rate in excess of 20 million cubic feet per day. The company plans to drill two additional development wells, Costello and Pi, later this fiscal year.

In the West Delta 73 field (100% WI/ 87% NRI), Magnum, the first of a four-well development drilling program, was drilled to 8,500 feet TVD, encountering 60 feet of net oil pay in three Pliocene F sands and first production is expected in March. Following Magnum is the Miller development well, a proved undeveloped location targeting F sands in a sparsely drilled area on the west side of the field with a planned total depth of 8,500 feet TVD.

At South Timbalier 54 (100% WI/ 87% NRI), drilling has commenced on Camshaft, the first of two planned development wells, targeting four separate G sands with a planned total depth of 12,000 feet TVD. Plans are to dual complete this well to optimize oil production.

Within the shallow-water, ultra-deep Gulf of Mexico shelf program, the McMoRan-operated partnership is approaching several important milestones.

Completion activities at the Davy Jones No. 1 discovery well at South Marsh Island Block 230 are in an advanced stage. The wellbore has been cleaned out to total depth and drilling mud has been displaced with completion fluid. Current expectations are to perforate and flow the well during the March quarter. Installation of the central processing facility, production platform and sales pipelines has been completed. First production from the well could be established shortly after a successful flow test. The company's investment in the Davy Jones discovery well (15.8% WI/12.3% NRI) as of Dec. 31, 2011, totaled about $45 million. McMoRan holds a 63.4 percent working interest in Davy Jones.

The Blackbeard East ultra-deep exploration by-pass well has been drilled to 33,318 feet TVD and the section below 30,800 feet TVD was recently logged, identifying potential hydrocarbons in the Sparta carbonate section. The Sparta interval measures 300 feet thick and appears to be a hydrocarbon-bearing fractured carbonate. A production liner will be set to total depth and the well will be temporarily abandoned while development options are evaluated. Blackbeard East is located in 80 feet of water on South Timbalier Block 144. The company's investment in Blackbeard East (18% WI/14.35% NRI) as of Dec. 31, 2011 was about $42 million. McMoRan holds a 72.0 percent working interest in the well.

The Lafitte exploration well (18% WI/14.6% NRI), located on Eugene Island Block 223 in 140 feet of water, is drilling below 33,000 feet TVD towards a proposed total depth of 34,000 feet TVD, targeting Lower Miocene, Oligocene and potentially Wilcox sections below the salt weld. In January 2012, wireline logs indicated 40 feet of possible hydrocarbon-bearing Frio sands between 31,300 feet and 31,700 feet TVD. In November 2011, wireline logs indicated 56 net feet of hydrocarbon-bearing sand over a 58 foot gross interval in the Cris-R section of the Lower Miocene. Recent pressure data and rotary sidewall cores obtained in the Cris-R sand are being evaluated. The new Frio and Cris-R sand intervals, combined with the 115 feet of potential net Miocene pay previously announced, brings the total possible productive net sands to 211 feet in the Lafitte well. Current plans are to drill ahead to 34,000 feet TVD targeting the Sparta section seen about 80 miles away at Blackbeard East. The company's investment at Lafitte as of Dec. 31, 2011 was about $31 million. McMoRan holds a 72.0 percent working interest in Lafitte.

The Blackbeard West #2 ultra-deep exploration well (22.9% WI/17.5% NRI) commenced drilling on Nov. 25, 2011 and is currently drilling below 15,450 feet TVD towards a proposed total depth of 26,000 feet TVD. The well, located on Ship Shoal Block 188 within the Blackbeard West unit, is targeting Miocene aged sands seen below the salt weld approximately 13 miles east at Blackbeard East. The company's investment at Blackbeard West #2 totaled $3.3 million at Dec., 31, 2011. McMoRan holds a 69.4 percent working interest in Ship Shoal Block 188.

In the partnership's first project to take the ultra-deep concept onshore, operations commenced Dec. 31, 2011 at the Lineham Creek exploration prospect. Lineham Creek is located in Cameron Parish, Louisiana and is targeting Eocene and Paleocene objectives below the salt weld, with a proposed total depth of 29,000 feet TVD. Chevron U.S.A Inc., as operator of the well, holds a 50 percent working interest, Energy XXI has a 9 percent working interest, and McMoRan has a 36.0 percent working interest.

Capital Expenditures

During the 2012 fiscal second quarter, capital expenditures, including plug-and-abandonment costs, totaled $134.5 million, with $46.6 million in exploration and $87.9 million in development and other investments. Total capital expenditures for fiscal 2012 ending June 30, 2012 are expected to be between $450 million and $500 million.

ENERGY XXI (BERMUDA) LIMITED

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(In Thousands, except per share information)

(Unaudited)

As required under Regulation G of the Securities Exchange Act of 1934, provided below are reconciliations of net income to the following non-GAAP financial measure: EBITDA. The company uses this non-GAAP measure as a key metric for the management of the company and to demonstrate the company's ability to internally fund capital expenditures and service debt.

	Three Months Ended		Six Months Ended
	December 31,		December 31,
	2011	2010	2011	2010

Net Income as Reported	$97,089	$10,934	$163,420	$11,067

Interest expense-net	28,348	21,943	55,527	43,413
Depreciation, depletion and amortization	87,568	62,922	172,371	116,999
Income tax expense	12,549	2,011	21,122	2,030

EBITDA	$225,554	$97,810	$412,440	$173,509

EBITDA Per Share
Basic	$2.95	$1.49	$5.39	$2.98
Diluted	$2.59	$1.49	$4.73	$2.97

Weighted Average Number of Common Shares Outstanding
Basic	76,498	65,479	76,481	58,241
Diluted	87,227	65,670	87,138	58,500

ENERGY XXI (BERMUDA) LIMITED

CONSOLIDATED BALANCE SHEETS

(In Thousands, except share information)

	December 31,	June 30,
	2011	2011
ASSETS	(Unaudited)
Current Assets
Cash and cash equivalents	$79,396	$28,407
Restricted cash	1,028	-
Accounts receivable
Oil and natural gas sales	141,314	126,194
Joint interest billings	2,814	4,526
Insurance and other	3,661	2,533
Prepaid expenses and other current assets	52,817	47,751
Derivative financial instruments	5,592	22
Total Current Assets	286,622	209,433
Property and Equipment
Oil and natural gas properties - full cost method of accounting, including $516.6 million and $467.3 million of unevaluated properties at December 31, 2011 and June 30, 2011, respectively	2,608,737	2,545,336
Other property and equipment	9,025	8,201
Total Property and Equipment	2,617,762	2,553,537
Other Assets
Derivative financial instruments	9,963	-
Deferred income taxes	-	2,411
Debt issuance costs, net of accumulated amortization	30,635	33,479
Total Other Assets	40,598	35,890
Total Assets	$2,944,982	$2,798,860
LIABILITIES
Current Liabilities
Accounts payable	$150,596	$163,741
Accrued liabilities	95,419	111,157
Notes payable	9,196	19,853
Asset retirement obligations	25,379	19,624
Derivative financial instruments	25,352	50,259
Current maturities of long-term debt	2,555	4,054
Total Current Liabilities	308,497	368,688
Long-term debt, less current maturities	1,029,009	1,109,333
Deferred income taxes	68,722	-
Asset retirement obligations	316,698	303,618
Derivative financial instruments	951	70,524
Other liabilities	6,234	-
Total Liabilities	1,730,111	1,852,163
Commitments and Contingencies
Stockholders' Equity
Preferred stock, $0.001 par value, 7,500,000 shares authorized:
7.25 % Convertible perpetual preferred stock, 8,000 shares issued and outstanding at December 31, 2011 and June 30, 2011, respectively	-	-
5.625% Convertible perpetual preferred stock, 1,050,000 shares issued and outstanding at December 31, 2011 and June 30, 2011, respectively	1	1
Common stock, $0.005 par value, 200,000,000 shares authorized and 76,790,281 and 76,203,574 shares issued and 75,533,928 and 76,202,921 shares outstanding at December 31, 2011 and June 30, 2011, respectively	384	381
Additional paid-in capital	1,499,528	1,479,959
Accumulated deficit	(309,152)	(465,160)
Accumulated other comprehensive income (loss), net of income taxes	24,110	(68,484)
Total Stockholders' Equity	1,214,871	946,697

Total Liabilities and Stockholders' Equity	$2,944,982	$2,798,860

ENERGY XXI (BERMUDA) LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, except per share information)

(Unaudited)

	Three Months Ended December 31,		Six Months Ended December 31,
	Three Months Ended December 31,		Six Months Ended December 31,
	2011	2010	2011	2010

Revenues
Oil sales	$309,347	$146,539	$556,264	$262,369
Natural gas sales	31,231	27,414	69,197	55,584
Total Revenues	340,578	173,953	625,461	317,953

Costs and Expenses
Lease operating	74,134	44,446	145,167	88,599
Production taxes	1,174	716	3,348	1,410
Gathering and transportation	3,395	801	9,548	822
Depreciation, depletion and amortization	87,568	62,922	172,371	116,999
Accretion of asset retirement obligations	9,803	6,348	19,491	12,322
General and administrative	22,147	15,786	41,468	34,383
Loss (gain) on derivative financial instruments	4,371	(1,638)	(6,001)	(2,776)
Total Costs and Expenses	202,592	129,381	385,392	251,759

Operating Income	137,986	44,572	240,069	66,194

Other Income (Expense)
Bridge loan commitment fees	-	(4,500)	-	(4,500)
Loss on retirement of debt	-	(5,184)	-	(5,184)
Other income	15	151	24	161
Interest expense	(28,363)	(22,094)	(55,551)	(43,574)
Total Other Income (Expense)	(28,348)	(31,627)	(55,527)	(53,097)

Income Before Income Taxes	109,638	12,945	184,542	13,097

Income Tax Expense	12,549	2,011	21,122	2,030

Net Income	97,089	10,934	163,420	11,067
Induced Conversion of Preferred Stock	-	19,796	-	19,796
Preferred Stock Dividends	3,706	2,426	7,412	4,420
Net Income (Loss) Attributable to Common Stockholders	$93,383	$(11,288)	$156,008	$(13,149)

Net Income (Loss) Per Share Attributable to Common Stockholders
Basic	$1.22	$(0.17)	$2.04	$(0.23)
Diluted	$1.11	$(0.17)	$1.88	$(0.23)

Weighted Average Number of Common Shares Outstanding
Basic	76,498	65,479	76,481	58,241
Diluted	87,227	65,479	87,138	58,241

ENERGY XXI (BERMUDA) LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

	Three Months Ended December 31,		Six Months Ended December 31,
	Three Months Ended December 31,		Six Months Ended December 31,
	2011	2010	2011	2010
Cash Flows From Operating Activities
Net income	$97,089	$10,934	$163,420	$11,067
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Depreciation, depletion and amortization	87,568	62,922	172,371	116,999
Deferred income tax expense	12,547	2,011	21,272	2,030
Change in derivative financial instruments
Proceeds from sale of derivative instruments	15,931	8,522	65,529	42,577
Other - net	(6,445)	(7,515)	(25,691)	(16,214)
Accretion of asset retirement obligations	9,803	6,348	19,491	12,322
Amortization of deferred gain on debt and debt discount and premium	-	(40,383)	-	(43,132)
Amortization and write-off of debt issuance costs	1,882	2,492	3,705	4,254
Stock-based compensation	1,189	391	10,114	2,180
Payment of interest in-kind	-	2,225	-	2,225
Changes in operating assets and liabilities
Accounts receivable	(30,275)	(48,371)	(17,581)	(39,971)
Prepaid expenses and other current assets	4,067	9,883	(5,066)	(2,278)
Settlement of asset retirement obligations	(1,407)	(29,311)	(1,994)	(34,618)
Accounts payable and accrued liabilities	(96)	19,354	(37,586)	20,012
Net Cash Provided by (Used in) Operating Activities	191,853	(498)	367,984	77,453
Cash Flows from Investing Activities
Acquisitions	(6,242)	(1,013,003)	(6,177)	(1,013,011)
Capital expenditures	(125,695)	(65,090)	(238,444)	(128,625)
Insurance payments received	5,692	-	6,472	-
Proceeds from the sale of properties	2,767	-	2,767	400
Other	(1,062)	115	(808)	83
Net Cash Used in Investing Activities	(124,540)	(1,077,978)	(236,190)	(1,141,153)
Cash Flows from Financing Activities
Proceeds from the issuance of common and preferred stock, net of offering costs	310	555,773	9,456	560,903
Conversion of preferred stock to common	-	(11,912)	-	(11,912)
Dividends to shareholders	(3,706)	(179)	(7,412)	(2,173)
Proceeds from long-term debt	285,854	1,113,000	522,324	1,160,000
Payments on long-term debt	(288,084)	(520,838)	(604,318)	(586,767)
Payments for debt issuance costs and other	(759)	(30,260)	(855)	(30,584)
Net Cash Provided by (Used in) Financing Activities	(6,385)	1,105,584	(80,805)	1,089,467

Net Increase in Cash and Cash Equivalents	60,928	27,108	50,989	25,767

Cash and Cash Equivalents, beginning of period	18,468	12,883	28,407	14,224

Cash and Cash Equivalents, end of period	$79,396	$39,991	$79,396	$39,991

ENERGY XXI (BERMUDA) LIMITED

CONSOLIDATED OPERATIONAL INFORMATION (In thousands) (Unaudited)

	Quarter Ended
	Dec. 31, 2011	Sept. 30, 2011	June 30, 2011	Mar. 31, 2011	Dec. 31, 2010
Operating Highlights	Dec. 31, 2011	Sept. 30, 2011	June 30, 2011	Mar. 31, 2011	Dec. 31, 2010
Operating revenues
Crude oil sales	$306,064	$249,767	$270,252	$233,081	$156,273
Natural gas sales	21,659	28,138	31,875	32,193	18,301
Hedge gain (loss)	12,855	6,978	(19,346)	(6,638)	(621)
Total revenues	340,578	284,883	282,781	258,636	173,953
Percent of operating revenues from crude oil
Prior to hedge gain (loss)	93%	90%	89%	88%	90%
Including hedge gain (loss)	91%	87%	85%	84%	84%
Operating expenses
Lease operating expense
Insurance expense	7,096	7,462	8,814	6,543	6,376
Workover and maintenance	12,805	6,653	17,251	4,121	4,105
Direct lease operating expense	54,233	56,918	59,557	54,593	33,965
Total lease operating expense	74,134	71,033	85,622	65,257	44,446
Production taxes	1,174	2,174	1,205	721	716
Gathering and transportation	3,395	6,153	6,868	4,809	801
DD&A	87,568	84,803	85,179	91,301	62,922
General and administrative	22,147	19,321	17,553	23,155	15,786
Other - net	14,174	(684)	7,730	9,288	4,710
Total operating expenses	202,592	182,800	204,157	194,531	129,381
Operating income	$137,986	$102,083	$78,624	$64,105	$44,572
Sales volumes per day
Natural gas (MMcf)	72.8	77.0	83.0	84.6	53.7
Crude oil (MBbls)	30.6	28.0	28.3	27.3	20.4
Total (MBOE)	42.7	40.8	42.1	41.4	29.4
Percent of sales volumes from crude oil	72%	69%	67%	66%	70%
Average sales price
Natural gas per Mcf	$3.23	$3.97	$4.22	$4.23	$3.70
Hedge gain per Mcf	1.43	1.39	1.37	1.28	1.85
Total natural gas per Mcf	$4.66	$5.36	$5.59	$5.51	$5.55
Crude oil per Bbl	$108.80	$97.11	$105.12	$94.94	$83.14
Hedge gain (loss) per Bbl	1.17	(1.11)	(11.53)	(6.67)	(5.18)
Total crude oil per Bbl	$109.97	$96.00	$93.59	$88.27	$77.96
Total hedge gain (loss) per BOE	$3.27	$1.86	$(5.05)	$(1.78)	$(0.23)
Operating revenues per BOE	$86.67	$75.91	$73.85	$69.46	$64.34
Operating expenses per BOE
Lease operating expense
Insurance expense	1.81	1.99	2.30	1.76	2.36
Workover and maintenance	3.26	1.77	4.51	1.11	1.52
Direct lease operating expense	13.80	15.17	15.55	14.66	12.56
Total lease operating expense	18.87	18.93	22.36	17.53	16.44
Production taxes	0.30	0.58	0.31	0.19	0.26
Gathering and transportation	0.86	1.64	1.79	1.28	0.29
DD&A	22.28	22.60	22.24	24.52	23.27
General and administrative	5.64	5.15	4.58	6.22	5.84
Other - net	3.60	(0.18)	2.01	2.49	1.74
Total operating expenses	51.55	48.72	53.29	52.23	47.84
Operating income per BOE	$35.12	$27.19	$20.56	$17.23	$16.50

Conference Call Tomorrow, Feb. 2, at 9 a.m. CDT, 3 p.m. London Time

Energy XXI will host its fiscal second-quarter conference call tomorrow, Feb. 2, at 9 a.m. CST (3 p.m. London time). The dial-in numbers are 1 (631) 813-4724 (U.S.) and (0) 80 0032 3836 (U.K.), and the confirmation code is 43357511. For complete instructions on how to actively participate in the conference call, or to listen to the live audio webcast or a replay, please refer to www.EnergyXXI.com.

Forward-Looking Statements

All statements included in this release relating to future plans, projects, events or conditions and all other statements other than statements of historical fact included in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon current expectations and are subject to a number of risks, uncertainties and assumptions, including changes in long-term oil and gas prices or other market conditions affecting the oil and gas industry, reservoir performance, the outcome of commercial negotiations and changes in technical or operating conditions, among others, that could cause actual results, including project plans and related expenditures and resource recoveries, to differ materially from those described in the forward-looking statements. Energy XXI assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law.

Competent Person Disclosure

The technical information contained in this announcement relating to operations adheres to the standard set by the Society of Petroleum Engineers. Bobby Poirrier Jr., Vice President of Corporate Development, a Petroleum Engineer, is the qualified person who has reviewed and approved the technical information contained in this announcement.

About the Company

Energy XXI is an independent oil and natural gas exploration and production company whose growth strategy emphasizes acquisitions, enhanced by its value-added organic drilling program. The company's properties are located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore. Seymour Pierce is Energy XXI's listing broker in the United Kingdom. To learn more, visit the Energy XXI website at www.EnergyXXI.com.

GLOSSARY

Barrel - unit of measure for oil and petroleum products, equivalent to 42 U.S. gallons.

BOE - barrels of oil equivalent, used to equate natural gas volumes to liquid barrels at a general conversion rate of 6,000 cubic feet of gas per barrel.

BOE/d - barrels of oil equivalent per day.

MMcf/d - million cubic feet of gas per day.

Net Pay - cumulative hydrocarbon-bearing formations.

NRI, Net Revenue Interest - the percentage of production revenue allocated to the working interest after first deducting proceeds allocated to royalty and overriding interest.

TD - target total depth of a well.

WI, Working Interest - the interest held in lands by virtue of a lease, operating agreement, fee title or otherwise, under which the owner of the interest is vested with the right to explore for, develop, produce and own oil, gas or other minerals and bears the proportional cost of such operations.

Workover / Recompletion - operations on a producing well to restore or increase production. A workover or recompletion may be performed to stimulate the well, remove sand or wax from the wellbore, to mechanically repair the well, or for other reasons.

Enquiries of the Company

Energy XXI

Stewart Lawrence

Vice President, Investor Relations and Communications

713-351-3006

slawrence@energyxxi.com

Greg Smith

Director, Investor Relations

713-351-3149

gsmith@energyxxi.com

Seymour Pierce

Jonathan Wright - Corporate Finance

Richard Redmayne - Corporate Broking

Tel: +44 (0) 20 7107 8000

Pelham Bell Pottinger

James Henderson

jhenderson@pelhambellpottinger.co.uk

Mark Antelme

mantelme@pelhambellpottinger.co.uk

+44 (0) 20 7861 3232

This information is provided by RNS

The company news service from the London Stock Exchange

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25-06-11	Rides XOM Purchase To Great First Half	SpikeyDT


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Energy XXI Rides XOM Purchase To Great First Half Jun. 25 2011 - 11:42 am http://blogs.forbes.com/joanlappin/2011/06/25/energy-xxi-rides-xom-purchase-to-great-first-half/ At the end of 2010, Energy XXI purchased a billion dollars worth of declining oil and gas properties from Exxon Mobil, in the Gulf of Mexico. One company’s declining fields can be a small company’s fantasy purchase and so this was. Exxon is so huge that after a certain point, spending money to stimulate and maintain fields that had been producing for years became small or irrelevant potatoes. To an emerging oil and gas company such as EXXI, it’s a challenge it was willing to take on to develop and exploit properties near wells it already owned and operated. At the end of 2010, EXXI had production of its own of 26,000 BOE of production. Combined with the wells in the properties purchased from Exxon of 20,000 BOE, total production suddenly almost doubled to 46 BOE per day. The new Bureau of Energy Management delayed the transfer of several of the wells due to paperwork issues, in some cases going back years, but at this point transfer is down to the very last well, South Timbalier 54, and that well is expected to be transferred to EXXI’s control before the end of June, finally completing the transaction. The deal was valued at $80 per barrel and average production garnered more than $90 during the first half. The big story here is that more than $200 million of the debt taken on to complete the transaction will have been paid off in the first six months after closing. Acquired operating cash flow was $315 million. Volumes are now starting to rise so that if net prices remain above $90 in the second half, more than another $200 million should be repaid by year end. The original expectation was for a 39 month payout. It is possible that this debt payoff may be accelerated to 2.5 years, or 30 months, or even less as EXXI’s production wizards get to work on the acquired fields and volumes accelerate. As for EXXI’s participation in the McMoran Exploration (MMR) ultra deep Gulf of Mexico play, that, too, had many rewards in the first half. The second Davy Jones well has been announced as an important discovery. That validated the continuity of the Wilcox sands seen 2.5 miles away in Davy Jones 1 where more than 200’ of pay was announced in early 2010. Davy 2 has now been cased to the bottom which reached the targeted deeper Tuscaloosa sands. The Tuscaloosa has been a prolific producer onshore Louisiana for decades in such fields as the Judge Digby, Port Hudson and others. But evaluating the seismic data and log reports has not been easy. Davy Jones 2 , drilled to a depth of 30,450’, is the very first well drilled to these targets in the Shallow Water Ultra Deep Gulf of Mexico play. It has been cased to the bottom and will be completed in the Tuscaloosa. That implies that something is down there but what has not yet been announced. It’s a brand new world that reinforces the concept of pioneering that the partners led by Jim Bob Moffitt are engaged in. Onshore over the years, the Tuscaloosa has produced a lot of oil due to a temperature regression. We don’t know if that is possible in the Ultra Deep on the shelf. Apparently there are few geologists in the world who have the skill to interpret the logs and read the seismic data from the cretaceous to establish exactly what has been found 6 miles down. Investors cannot understand the delay in news but it appears this is the reason. It also appears that as this Ultra Deep play heats up, more deep pocketed players are showing up to participate. It is not in MMR and EXXI’s best interest to reveal all they know while jockeying for position in what is emerging as a very significant ongoing play. The Davy Jones complex has been described as a “giant success.” Production equipment has been ordered and the gating item appears to be the 25,000 lb. Blow Out Preventer that is be ...Read Full Message More View thread 1 Respond Login to Vote up New enhanced Spread Betting platform. Find out more.
16-06-11	RNS-Operations Update	SpikeyDT


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DJ Energy XXI (Bermuda) Limited Operations Update TIDMEXXI RNS Number : 5771I Energy XXI (Bermuda) Limited 16 June 2011 Energy XXI Provides Operations Update -- Operatorship awarded on West Delta fields -- Production exceeds 46,500 BOE/d HOUSTON - June 16, 2011 - Energy XXI (NASDAQ: EXXI) (AIM: EXXI) today provided an operational update, including results of the first recompletion at the South Pass 89 field and drilling of the Onyx prospect at the Main Pass 73 field. In addition, the company announced it has been granted operatorship of the West Delta 30 and West Delta 73 fields obtained in the ExxonMobil asset acquisition in December 2010. "Gaining control of these fields allows us to move forward with our production optimization and capital programs," Chairman and Chief Executive Officer John Schiller said. "We expect to have the last field, South Timbalier 54, under our control by the end of the month." Exploration and Development Activity Within the company's core producing properties, located offshore Louisiana, the first of a six-well recompletion program at the South Pass 89 field has been successful. The A-15 well is currently flowing 18 million cubic feet per day and 300 barrels of condensate per day, with 3,100 pounds of flowing tubing pressure. The well, forecast to deliver 800 barrels of oil equivalent per day (BOE/d) net, is producing 2,500 BOE/d net. These production levels equal the company's pre-work estimate for the entire six-well program. At the Grand Isle 16 field, the company perforated a prospective natural gas zone in the J 21 well, which instead tested mostly oil at approximately 1,200 BOE/d. That well has been shut in until a platform rig is mobilized to complete work. In addition the Rowan EXL 3 rig, previously working for McMoRan, will be mobilized to Grand Isle 16 to perform three recompletions that have been identified to optimize production. Quarter-to-date, production has averaged approximately 42,500 BOE/d, benefitting from the success at South Pass 89 and other previously announced recompletions. Current production exceeds 46,500 BOE/d. This production level has been achieved despite the fact Energy XXI did not have operational control over the West Delta 73 and South Timbalier 54 fields, which are the largest fields added in the December 2010 acquisition. Near-term production also should be augmented by two successful wells at the Main Pass 73 field. The Onyx well was drilled to 5,635 feet and encountered two pay zones that were previously modeled as salt. The well was completed and initial testing is beginning today. The rig currently is being moved to begin completion operations on the Ashton well which, as previously announced, encountered seven pay zones. Combined initial production from Ashton and Onyx is expected to approximate 1,500 BOE/d within the next 30 days. Within the shallow-water, ultra-deep Gulf of Mexico shelf program, the McMoRan-operated partnership (in which Energy XXI has various interests) has continued activity at the Blackbeard East and Lafitte exploratory wells and the offset appraisal well at Davy Jones. The Davy Jones offset well, located on South Marsh Island Block 234 in 20 feet of water, has been drilled and cased to 30,450 feet. Logging operations have been completed and the logs are being evaluated. As previously announced, wireline logs indicated over 200 feet of gross sand and approximately 100 net feet of sand, based on porosity data available, in multiple Wilcox zones that appear to be hydrocarbon bearing. Below the identified Wilcox section the well encountered Upper Cretaceous, Tuscaloosa and Lower Cretaceous sections. The well is being readied for production once equipment has been procured, with expected first production to occur during the second quarter of calendar 2012. Energy XXI has a 15.8 percent working interest and 12.6 percent net revenue interest in Davy Jones. The Blackbeard E ...Read Full Message More View thread 1 Respond Login to Vote up New enhanced Spread Betting platform. Find out more.
03-06-11	NASDAQ Conferences in London	SpikeyDT


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Energy XXI to Present at Enercom and NASDAQ Conferences in London June 2, 2011 11:16 AM ET HOUSTON, June 2, 2011 (GLOBE NEWSWIRE) -- Energy XXI (Nasdaq:EXXI) (LSE:EXXI) today announced participation in two upcoming industry events in London. Executive Vice President Ben Marchive will present at Enercom's London Oil & Gas Conference at 2:30 PM GMT on June 16, 2011. Chairman and CEO John Schiller will present at NASDAQ OMX's 26th Investor Program at 10:15 AM GMT on June 21, 2011. Information regarding webcasting will be available on the Energy XXI homepage ( www.EnergyXXI.com ) in the Investor Relations, Events & Presentations section. About the Company Energy XXI is an independent oil and natural gas exploration and production company whose growth strategy emphasizes acquisitions, enhanced by its value-added organic drilling program. The company's properties are located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore. Seymour Pierce is Energy XXI's listing broker in the United Kingdom. To learn more, visit the Energy XXI website at www.EnergyXXI.com . The Energy XXI logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3587 CONTACT: Energy XXI Stewart Lawrence Vice President, Investor Relations and Communications 713-351-3006 slawrence@energyxxi.com Greg Smith Director, Investor Relations 713-351-3149 gsmith@energyxxi.com Seymour Pierce Nominated Adviser: Jonathan Wright, Jeremy Porter Corporate Broking: Richard Redmayne Tel: +44 (0) 20 7107 8000 Pelham Bell Pottinger James Henderson jhenderson@pelhambellpottinger.co.uk Mark Antelme mantelme@pelhambellpottinger.co.uk +44 (0) 20 7861 3232 © 2011 GlobeNewswire More View thread 1 Respond Login to Vote up New enhanced Spread Betting platform. Find out more.
28-04-11	RNS; Operational Update	SpikeyDT


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DJ Energy XXI (Bermuda) Limited Third-Quarter Results & Operational Update TIDMEXXI RNS Number : 5968F Energy XXI (Bermuda) Limited 28 April 2011 Energy XXI Reports Fiscal Third-Quarter Results And Provides Operational Update -- Year-over-year quarterly volumes rise 63 percent, EBITDA climbs 78 percent -- Debt reduced $80 million in the quarter -- Exploration and development program advances HOUSTON - April 27, 2011 - Energy XXI (NASDAQ: EXXI) (AIM: EXXI) today announced fiscal third-quarter results for the period ended March 31, 2011 and provided an operational update. For the 2011 fiscal third quarter, Energy XXI reported earnings before other income (expense), taxes, depreciation, depletion and amortization (adjusted EBITDA) of $155.4 million, compared with $87.3 million in the 2010 fiscal third quarter. Net income attributable to common shareholders for the 2011 fiscal third quarter was $14 million, or $0.19 per diluted share, on revenues of $258.6 million and production of 41,400 barrels of oil equivalent per day (BOE/d). The results include a $10.9 million after-tax loss on the retirement of debt during the quarter. Oil represented 66 percent of the volumes and 88 percent of pre-hedge revenues during the quarter. In the 2010 fiscal third quarter, the company had net income attributable to common shareholders of $9.1 million, or $0.18 per diluted share, on revenues of $150.1 million and production of 25,400 BOE/d. "Energy XXI clearly is benefitting from the transformational acquisition of ExxonMobil Gulf of Mexico shelf assets in December 2010. Increased production and cash flow drove continued balance sheet strengthening, with an $80 million reduction in debt during the quarter, while exploration and development activities highlighted a good quarter for the company," Energy XXI Chairman and CEO John Schiller said. "Early success in operating the acquired properties lends encouragement for our future capital program." Production Update Production in the 2011 fiscal third quarter averaged 41,400 BOE/d. Volumes were positively affected by the December acquisition of Gulf of Mexico properties, partially offset by temporary issues such as pipeline and processing outages, delays in gaining operatorship of certain of the acquired properties, and freezing production equipment early in the quarter. Exploration and Development Activity As previously announced, Energy XXI has remained active in developing its core producing properties and pursuing high-potential exploration. Summarized below is the status of select wells. -- The McMoRan-operated Valentine Pontiff well in St. Mary Parish, Louisiana, which was tested at a gross rate of 54 million cubic feet of natural gas per day (MMcf/d) (approximately 8 MMcf/d net to Energy XXI), is being placed online today. Energy XXI has an 18.75 percent working interest and a 15 percent net revenue interest in the well. -- At Main Pass 72, the Ashton well successfully penetrated seven hydrocarbon-bearing sands totaling 300 net feet of pay before entering the salt body at 6,380 feet. Success at the Ashton well, which is the company's first test of its reinterpreted salt-related seismic data in the Main Pass 72 field, sets up other opportunities nearby, including the Onyx well that is expected to start drilling next month. -- The Davy Jones offset well, which has been drilled to 30,546 feet, is in the process of being logged to evaluate the established Wilcox pay sands as well as the deeper Cretaceous section. Energy XXI has a 15.8 percent working interest and 12.6 percent net revenue interest in Davy Jones. -- The Blackbeard East ultra-deep exploration well at South Timbalier Block 144 is continuing to make progress recovering drill pipe and tools stuck in the hole while drilling the well to 32,559 feet. The operator has washed over and recovered 1,866 feet of stuck pipe and is proceeding with recovery efforts. The t ...Read Full Message More View thread 1 Respond Login to Vote up New enhanced Spread Betting platform. Find out more.

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